| Diverse operations should shield a business during downturns in the economy. A stable business also allows the company to lower it's risk and increase it's value. Additionally, if one area suffers a downturn, other business can provide cash flow to reinvest in the depressed area before the next upturn in business. Diversification could bring benefits and stability to company especially in volatile markets.
A country works the same way. When a country's business is diverse, this shields them from risk. If one business fails, the other businesses can fill in the gaps until the industry recovers. If a country relied only on tourism, a change in that market could ruin many other businesses that relied on it. Unemployment would increase and other issues would harm the entire economy. Specific Company Comments: WikiWealth needs your help. How does this discussion…
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